Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Atlas Iron has raised concerns that the attempt by fellow iron ore junior Brockman Mining to have the Western Australian government grant Brockman access to the rail network of Fortescue Metals Group may prevent Atlas succeeding in an access deal with Fortescue. Fortescue's rail capacity would be fully utilised by Fortescue and its partner BC Iron, leaving no room to support other companies, stated Fortescue's infrastructure subsidiary The Pilbara Infrastructure in its submission to the WA Economic Regulation Authority. Page 15.
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The A$5.77 billion listed Australian Foundation Investment Company will lose two of its longstanding directors at its October annual general meeting when chairman Bruce Teele and former BHP Billiton chairman Don Argus stand down. Terry Campbell, chairman of Goldman Sachs Australia and New Zealand will take over from Mr Teele. AFIC also announced yesterday a net profit for 2012-13 of A$242.7 million, a 10.4 percent rise over the previous year. Page 15.
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Altamont Capital Partners is expected to take command of Billabong International's DaKine brand today and finalise its A$325 million takeover bridging loan. Over the weekend, the Australian Shareholders' Association requested that the Takeovers Panel ban the Altamont-related A$65 million break fee to enable a competitive auction for Billabong's assets, supporting hedge funds Oaktree Capital and Centerbridge Partners' claim they offer a better deal to rescue Billabong. Page 17.
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Woolworths will sell Retail FM, formerly Austral Refrigeration, to commercial refrigeration rival McAlpine Hussman, just 10 months after having acquired Australia's largest commercial refrigeration company from the collapsed Hastie Group. Woolworths will sell its fridge manufacturing operations to McAlpine Hussman and retain its repairs and maintenance division as part of the deal. Page 17.
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Singapore-listed Tiger Airways Holdings subsidiary Tigerair Australia yesterday reported improvements in both revenue and traffic volumes for the June quarter, compared to the same period last year. A traffic rise of 68.9 percent and a 0.8 percent rise in yield contributed to a 70.2 percent rise in revenue to S$71 million. Overall, Tigerair Australia reported a S$17.3 million operating loss, an improvement over the S$21 million loss for the same period last year but weaker than the S$15 million loss for the March quarter. Page 17.
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Integrated almond producer, marketer and exporter Select Harvests, with 80 percent of this year's crop processed, is forecasting for fiscal 2013 a yield of 11,800 tonnes which combines with almonds at A$6.38 a kilogram to give a net profit before significant items of A$22 million. "Historically, demand for almonds has been growing at 8 percent per annum, supply has been growing at 4 percent per annum," said managing director Paul Thompson. California, where 86 percent of the world supply of almonds is produced, is currently experiencing problems with pests. Page 18.
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Esra Ogru, who was stood down a few weeks ago as chief executive of Melbourne-based biotechnology company Phosphagenics Ltd over financial irregularities, has resigned from her director role with the company. The amount involved is thought to be between A$1 million and A$2 million and the company expects to announce the results of a forensic investigation tomorrow. Harry Rosen, joint chief executive and executive director, has arrived from New York to manage the company in the absence of Dr Ogru. Page 18.
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Energy retail company Origin Energy has invested A$5.6 million to acquire a 50 percent stake in an offshore exploration venture operated off the coast of Darwin by MEO Australia. Origin will also invest up to A$35 million in further MEO exploratory drilling, as Origin seeks to increase gas supply to the Northern Territory market which is currently experiencing shortages. Page 18.
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Macquarie Group is promoting Stuart Green into the treasurer role from his current position of head of investor relations and corporate communications, sources report. Current treasurer David Bennet is expected to retire in August. Kris Neill and Karen Khadi will move into Mr Green's former roles. Page 19.
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THE AUSTRALIAN (www.theaustralian.com.au)
Australia's small iron ore mining companies have accumulated cash reserves of over A$1 billion. BC Iron yesterday announced its cash position had reached A$138.5 million while Mount Gibson Iron a few days ago updated its cash reserves to A$376 million. At the end of March, Atlas Iron had cash of A$404 million with debt of A$263 million, Grange Resources held A$164.3 million, with both companies expected to have increased their cash holdings during the June quarter. Page 19.
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Virgin Australia's loyalty program Velocity added 500,000 members over the last year to reach 3.7 million. The rival Qantas Frequent Flyer program has 9.3 million members. Velocity has a target of 5 million members by 2015 and is succeeding because "it is demonstrably easier to get seats on both us and our partners", said chief executive Neil Thompson, who added: "I'd rather have five million highly engaged members than two million out of 10 million engaged." Page 19.
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In a study commissioned by Industry Super Network, actuaries Rice Warner have determined the Future of Financial Advice reforms from the Federal government will produce benefits over the next 15 years that outweigh the costs by a factor of three. By 2026-27 the industry would provide 1.9 million pieces of advice, with an average advice cost in present dollar terms of A$1163, compared to the current average of A$2046. In 2027 dollar terms, the advice industry would lose A$2.7 billion, but their Australian customers would be A$144 billion better off as their money would be producing returns rather than providing their advisers with luxuries. Page 19.
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Following last week's profit downgrade by Orica, brokers, including Credit Suisse, Goldman Sachs and UBS, have downgraded their Orica recommendations. "Orica is seemingly losing share in a shrinking ammonium nitrate market," commented Andrew Peros from Credit Suisse. Mark Wilson of Deutsche Bank was more positive, retaining his "buy" rating and commenting that Orica's earnings should recover in 2013-14 as the Australian dollar depreciates and Orica restructures its Minova acquisition. Page 19.
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West Australian Pilbara-focused iron ore mining company BC Iron has announced record shipments of 1.6 million tonnes of wet iron from its Nullagine joint venture with Fortescue Metals Group. The June quarter result was a 12 percent lift over the results from last year's corresponding period. The acquisition of another 25 percent of the project from Fortescue in December, lifting BC's allocation to 75 percent, boosted production, said managing director Morgan Ball. Page 20.
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Mark McInnes, head of Premier Retail, yesterday attacked the Federal Labor Party over the "wilful neglect by government of the non-miming sectors of the economy" as he introduced Opposition Leader Tony Abbott to an Australian-Israel Chamber of Commerce lunch in Melbourne. The government's award wage legislation forced extra costs on business regardless of performance or productivity of workers, Mr McInnes said. Its refusal to change the goods and services tax exemption for foreign internet purchases of less than A$1000 had contributed to thousands of Australians losing their jobs in retail, he added. Page 21.
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Brett Clegg, chief executive of the Financial Review Group, is departing Fairfax Media to move to News Corp Australia, according to sources. Sean Aylmer will take Mr Clegg's role as group director, Business Media, while Fairfax director, News Media, Gary Linnell will act in Mr Aylmer's role while a replacement is located. Page 21.
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Jetset Travelworld yesterday announced a brand renovation following a review by the Boston Consulting Group initiated by chief executive Rob Gurney on his appointment to the role. Around 1700 bricks and mortar agencies currently operating as Travelworld, Harvey World Travel, Travelscene American Express and Jetset along with BestFlights.com would be impacted, said Mr Gurney. Page 21.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Sydney-based QBE Insurance Group's plan to move information technology roles to India has had to be adjusted as regulators insist certain data must remain in Australia. WorkSafe Victoria will not allow data relating to employers of injured workers to be stored outside Australia and WorkCover New South Wales does not allow customer-facing operations of agents to be located offshore. QBE will be retaining some staff in Australia. Page 21.
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CFS Retail, a retail sector-specific real estate investment trust (REIT), has conditionally sold four Victorian shopping centres to the proposed Pacific Retail REIT for A$446.5 million. Pacific Retail is planning an initial public offering in the next few months aiming for an initial raising of around A$400 million. Page 24.
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THE AGE (www.theage.com.au)
For 2012-13, median growth superannuation funds returned 15.6 percent, according to data from research company Chant West. At 18.6 percent, BT Super for Life - 1960s Lifestage was the most outstanding fund, followed by REST Core with 18.4 percent and Aon Balanced at 17.9 percent. Over the last 10 years the best performing funds, at 8 percent a year, were REST Core and Commonwealth Bank Group Super. Page 21.
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